BILL NUMBER: AB 2383	CHAPTERED  09/29/00

	CHAPTER   874
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 28, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN SENATE   AUGUST 31, 2000
	AMENDED IN SENATE   AUGUST 14, 2000
	AMENDED IN SENATE   JUNE 22, 2000
	AMENDED IN ASSEMBLY   MAY 26, 2000
	AMENDED IN ASSEMBLY   APRIL 6, 2000

INTRODUCED BY   Assembly Members Keeley and Honda
   (Coauthor:  Assembly Member Lempert)
   (Coauthors:  Senators Johnston, Karnette, McPherson, Ortiz, and
Vasconcellos)

                        FEBRUARY 24, 2000

   An act to add Section 25950 to the Education Code, and to add
Article 10 (commencing with Section 22878) to Chapter 1 of Part 5 of
Division 5 of Title 2 of the Government Code, relating to health
benefits, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2383, Keeley.  Public employee health benefits:  covered
employees:  retiree health benefits.
   (1) Existing law, the Public Employees' Medical and Hospital Care
Act, defines "employee" for purposes of eligibility for benefits
under the act and excludes from that definition specified officers
and employees who are employed less than half time.  Employee
contributions under the act are deposited in the Public Employees'
Health Care Fund, a continuously appropriated fund.
   This bill would make the provisions of that act applicable to
specified employees of a school or agency, as defined, at the option
of its governing body, and would define annuitants for purposes of
these provisions.  By expanding eligibility for benefits under the
act, the bill would increase the contributions to a continuously
appropriated fund, thereby making an appropriation.
   (2) Existing law, the Teachers' Retirement Law, provides that the
State Teachers' Retirement System shall develop a program to provide
health care benefits for members, beneficiaries, children, and
dependent parents, as defined.
   This bill would require the Teachers' Retirement Board to report
to the Legislature, on or before April 1, 2001, on a prescription
drug program and a health benefits program for retired members, as
specified, and would authorize the Public Employees' Retirement
System to submit a proposal to administer a health benefits program
for retired members of the State Teachers' Retirement System and
their dependents.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 25950 is added to the Education Code, to read:

   25950.  On or before April 1, 2001, the board shall report to the
Legislature on a prescription drug program and a program to provide
health benefits to retired members.  The report shall include an
analysis of all potential methods of financing and administering the
programs.  These shall include, but are not limited to, (1) the
system providing those health benefits under contracts with carriers
or other entities that administer health benefits plans, (2)
reimbursing employers for the costs of providing those health
benefits to retired employees, and (3) crediting employers and
employing agencies, against the amount contributed pursuant to
Section 22950, a monthly amount, adjusted annually, for each retiree
the employer or employing agency certifies is enrolled in one or more
health care benefits programs administered or sponsored by the
employer or employing agency.  The report shall include an estimate
of the fiscal impact of each program on the system, including
administration and program costs, and recommended statutory language
to implement each program.
  SEC. 2.  Article 10 (commencing with Section 22878) is added to
Chapter 1 of Part 5 of Division 5 of Title 2 of the Government Code,
to read:

      Article 10.  Provisions for Schools and Agencies

   22878.  The provisions of this part apply to schools and agencies,
as these terms are defined in this article.  The purpose of this
article is to set forth provisions which may only be used by schools
and agencies, as those terms are defined in this article.  If schools
and agencies choose to follow the provisions of this article, all
conflicting provisions of this part shall be superseded.  This
article shall not apply to any other employer, employee, annuitant,
or family member who has, or elects to have, health care coverage
pursuant to this part.
   22878.1.  The definitions in this part shall govern the
interpretation of terms in this article, except that the following
definitions shall govern the interpretation of these specific terms
as used in this article:
   (a) "School" means any contracting agency that is a special
district, school district, county board of education, personnel
commission of a school district, a county superintendent of schools,
or a community college district.
   (b) "Agency" means any contracting agency, as defined in Section
20022, any county or special district subject to the County Employees
Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of
Part 3 of Division 4 of Title 3) and any contracting agency that is
a public body or agency within California not covered by the Public
Employees' Retirement System or subject to the County Employees
Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of
Part 3 of Division 4 of Title 3), that provides a retirement system
for its employees funded wholly or in part by public funds.
   22878.2.  (a) A school or agency may by resolution filed with the
board deem all permanent or regular employees, except members of the
State Teachers' Retirement System, who have an appointment of six
months or longer but who are employed on a less than half-time basis,
to be employees subject to this part.
   (b) An agency or school with employees who are members of the
State Teachers' Retirement System may by resolution filed with the
board deem any of the following to be employees subject to this part:

   (1) Regular, permanent, probationary, or temporary employees or
substitutes who have an appointment for a semester, or for six
months, or for half of the school year or longer, but are employed on
a less than a half-time basis.
   (2) Substitutes who have an appointment for 100 days or more in
the school year.
   22878.3.  As used in this part, the term "annuitant" shall
include:
   (a) A family member of a deceased retired member of the State
Teachers' Retirement System who retired within 120 days of separation
from employment, and who prior to his or her death, received a
retirement allowance that did not provide for a survivor allowance to
family members and who elects coverage as an annuitant prior to
January 1, 2003.  This subdivision shall not apply to any family
member of a retired member of the State Teachers' Retirement System
who retired on or after January 1, 2003 from a school contracting
under this part prior to January 1, 2001.
   (b) A family member of a deceased retired member of the State
Teachers' Retirement System who retired within 120 days of separation
from employment, who retired before the member's school elected to
contract for health benefit coverage under this part, and who, prior
to his or her death, received a retirement allowance that did not
provide for a survivor allowance to family members and who elects
coverage as an annuitant within one calendar year from the date that
the member's school elected to contract for health benefit coverage
under this part.
  SEC. 3.  At the request of the Teachers' Retirement Board, the
Public Employees' Retirement System may submit a proposal to
administer a health benefits program for retired members of the State
Teachers' Retirement System and their dependents.
